Price Analysis 12/08: BTC, ETH, XRP, BCH, LTC, BNB, EOS, BSV, XMR, XLM
Altcoins are attempting a recovery, but will it last? Let’s analyze the charts.
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Market data is provided by the HitBTC exchange.
Goldman Sachs is positive on Bitcoin. In a note, one of the firm’s analysts has projected a short-term target of $12,916 to $13,971, after which it might enter a consolidation. For the long term, the analyst considers the current move as the first leg of the five wave count, which means that the analyst believes the leading cryptocurrency has a lot of room to run and views dips as buying opportunity as long as the price does not drop below $9,084.
While many are bullish on Bitcoin, altcoins led by Ether are not finding much love. However, in a poll by Nik Patel, the author of “An Altcoin Trader’s Handbook,” 54% of the participants were bullish and expected Ether to trade above $1,000 sometime in the future.
China, which was planning its own digital currency to counter Libra and U.S. dollar-based stablecoins, has developed a prototype that adopts a blockchain architecture. PBoC deputy director Mu Changchun has said that China’s digital currency “can now be said to be ready." Though it will be digital money backed by the central bank, it will force other nations to move in this direction.
Bitcoin (BTC) has been holding above the downtrend line and both moving averages for the past two days, but it has failed to rebound sharply. The trend remains positive as both moving averages are sloping up and the RSI is above 50. However, failure of the price to pick up momentum after breaking out of the downtrend line warrants caution.
Both moving averages and the downtrend line are located at the same place, which makes it a strong support. If the BTC/USD pair rebounds sharply and rises above $12,304.37, it can move up to $13,156.96 and above it to $13,973.50. Hence, traders can continue to hold the long position with stops at the breakeven. However, if the price plummets below both moving averages, it is likely to attract further selling and a drop to $9,080 is probable.
Ether (ETH) declined below the uptrend line on Aug. 9, but the bears could not break below the psychological support of $200. The bulls are now attempting to propel the price back above the uptrend line. If successful, the digital currency will again try to break out of $235.70. A move above this level is likely to resume the uptrend. We might suggest a long position on a close Coordinated Universal Time (UTC) above $235.70.
On the other hand, if the price fails to sustain above the uptrend line, bears will again attempt to break below the next support of $192.945. If this level breaks down, the ETH/USD pair will turn negative and can plunge to $164 and below it to $150. The gradually downsloping moving averages and RSI below 50 show that bears hold the advantage in the short term.
The bulls defended the critical support of $0.27795 on Aug. 10, which is a positive sign. However, the rebound has not been able to cross above the 20-day EMA, which shows a lack of buying at higher levels. If XRP again corrects to $0.27795, the probability of a breakdown increases.
The XRP/USD pair will become very negative if it breaks down of $0.27795, because it will trigger many stop losses and buying will dry up. The next target to watch on the downside is $0.19.
Conversely, if the price holds $0.27795 and rises above the 20-day EMA, it might consolidate between $0.27795 and $0.34229 for a few days. On a breakout of this range, we anticipate a move to $0.45. We suggest traders wait for the price to sustain above the 20-day EMA before turning positive. Until then, it is best to remain on the sidelines.
Bitcoin Cash (BCH) bounced from $300.11 on Aug. 10, hence our recommended stop loss of $300 on the